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Interest group size dynamics and policymaking

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Author Info
Vjollca Sadiraj ()
Jan Tuinstra
Frans Winden

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Abstract

We present a dynamic model of endogenous interest group sizes and policymaking. The model integrates ‘top-down' (policy) and `bottom-up' (individual and social-structural) influences on the development of interest groups. Comparative statics results show that the standard assumption of fixed-sized interest groups can be misleading. Furthermore, dynamic analysis of the model demonstrates that reliance on equilibrium results can also be misleading since equilibria may be unstable. Complicated dynamics may then emerge naturally, leading to erratic time patterns for policy and interest group sizes. Our model can endogenously generate the types of spurts and declines in organizational density reported in empirical studies. Copyright Springer Science + Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s11127-005-4599-5
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 125 (2005)
Issue (Month): 3 (December)
Pages: 271-303
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Handle: RePEc:kap:pubcho:v:125:y:2005:i:3:p:271-303

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Bischoff, Ivo, 2003. " Determinants of the Increase in the Number of Interest Groups in Western Democracies: Theoretical Considerations and Evidence from 21 OECD Countries," Public Choice, Springer, vol. 114(1-2), pages 197-218, January. [Downloadable!] (restricted)
  2. Mauro, Paolo, 1995. "Corruption and Growth," The Quarterly Journal of Economics, MIT Press, vol. 110(3), pages 681-712, August. [Downloadable!] (restricted)
  3. Hausken, Kjell, 1995. "The dynamics of within-group and between-group interaction," Journal of Mathematical Economics, Elsevier, vol. 24(7), pages 655-687. [Downloadable!] (restricted)
  4. Freeman, Richard B, 1988. "Contraction and Expansion: The Divergence of Private Sector and Public Sector Unionism in the United States," Journal of Economic Perspectives, American Economic Association, vol. 2(2), pages 63-88, Spring. [Downloadable!] (restricted)
  5. Richard B. Freeman, 1997. "Spurts in Union Growth: Defining Moments and Social Processes," NBER Working Papers 6012, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Schram, Arthur & Sonnemans, Joep, 1996. "Voter Turnout as a Participation Game: An Experimental Investigation," International Journal of Game Theory, Springer, vol. 25(3), pages 385-406.
  7. Grandmont, Jean-Michel, 1985. "On Endogenous Competitive Business Cycles," Econometrica, Econometric Society, vol. 53(5), pages 995-1045, September. [Downloadable!] (restricted)
  8. Ronald Bosman & Heike Hennig-Schmidt & Frans vanWinden, 2002. "Exploring Group Behavior in a Power-to-Take Video Experiment," Bonn Econ Discussion Papers bgse7_2002, University of Bonn, Germany, revised May 2002. [Downloadable!]
  9. Neumann, George R & Rissman, Ellen R, 1984. "Where Have All the Union Members Gone?," Journal of Labor Economics, University of Chicago Press, vol. 2(2), pages 175-92, April. [Downloadable!] (restricted)
  10. Cassing, James H & Hillman, Arye L, 1986. "Shifting Comparative Advantage and Senescent Industry Collapse," American Economic Review, American Economic Association, vol. 76(3), pages 516-23, June. [Downloadable!] (restricted)
  11. Tuinstra, Jan, 2000. "The emergence of political business cycles in a two-sector general equilibrium model," European Journal of Political Economy, Elsevier, vol. 16(3), pages 509-534, September. [Downloadable!] (restricted)
  12. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May. [Downloadable!] (restricted)
  13. Hausken, Kjell, 2000. "Cooperation and between-group competition," Journal of Economic Behavior & Organization, Elsevier, vol. 42(3), pages 417-425, July. [Downloadable!] (restricted)
  14. Hwan Baik, Kyung & Lee, Sanghack, 1997. "Collective rent seeking with endogenous group sizes," European Journal of Political Economy, Elsevier, vol. 13(1), pages 121-130, February. [Downloadable!] (restricted)
  15. Potters, Jan & Sloof, Randolph, 1996. "Interest groups: A survey of empirical models that try to assess their influence," European Journal of Political Economy, Elsevier, vol. 12(3), pages 403-442, November. [Downloadable!] (restricted)
  16. Dixit, Avinash & Grossman, Gene M & Helpman, Elhanan, 1997. "Common Agency and Coordination: General Theory and Application to Government Policy Making," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 752-69, August.
  17. Toke Skovsgaard Aidt, 2002. "Strategic Political Participation and Redistribution," Economics and Politics, Blackwell Publishing, vol. 14(1), pages 19-40. [Downloadable!] (restricted)
  18. Selten, Reinhard, 1998. "Features of experimentally observed bounded rationality," European Economic Review, Elsevier, vol. 42(3-5), pages 413-436, May. [Downloadable!] (restricted)
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Sadiraj, V. & Tuinstra, J. & Winden, F. van, 2004. "A Computational Electoral Competition Model with Social Clustering and Endogenous Interest Groups as Information Brokers," CeNDEF Working Papers 04-08, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance. [Downloadable!]
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  2. Vjollca Sadiraj & Jan Tuinstra & Frans van Winden, 2005. "On the Size of the Winning Set in the Presence of Interest Groups," Tinbergen Institute Discussion Papers 05-034/1, Tinbergen Institute. [Downloadable!]
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